S&P Assigns B– Bitcoin Credit Rating to Strategy Inc
S&P Global Ratings has assigned a B– long-term credit rating to Strategy Inc, marking the first public bitcoin credit rating for a corporate treasury; the outlook remains stable.
Strategy Inc’s treasury holds about 640,000 BTC (roughly $73 billion). The company funds its bitcoin accumulation through equity issuances, convertible and preferred stock, and around $8 billion in convertible debt plus $640 million in annual preferred dividends, while its software unit breaks even.
The bitcoin credit rating report flags risks including high asset concentration in BTC, a narrow business focus, a currency mismatch between dollar-denominated debt and bitcoin holdings, and potential liquidity strain from market volatility. S&P treats bitcoin as a volatile asset, removing it from equity in capital calculations and resulting in weak risk-adjusted capitalization.
Despite these concerns, analysts remain optimistic. TD Cowen reaffirms a buy rating with a $620 price target, forecasting 900,000 BTC by 2027. The rating underscores the need for rating agencies to adapt legacy frameworks to crypto-native business models amid increasing short-term volatility and long-term asset risks.
Neutral
The B– bitcoin credit rating with a stable outlook highlights both risk factors and institutional acceptance. In the short term, flagged liquidity and concentration risks may prompt cautious trading and moderate volatility. However, the stamp of a public credit rating, combined with bullish analyst forecasts like TD Cowen’s buy rating and long-term BTC accumulation targets, balances sentiment. Over the long run, the move pressures legacy rating agencies to adapt, potentially boosting institutional confidence in crypto treasuries without immediately driving strong price action.